ACCT 223 Taxation Course Outline AY 2015/16 Term 1 (Groups 3&4)

Transcription

1 ACCT 223 Taxation Course Outline AY 2015/16 Term 1 (Groups 3&4) A. Instructor and Contact Information Prof. Sum Yee Loong Room 5031, School of Accountancy Singapore Management University Singapore Tel: (65) Fax: (65) ylsum@smu.edu.sg Consultation times: Weekdays anytime from 7.30 am to 6pm (unless I have classes). B. Course Prerequisites Students must have completed Financial Accounting i.e. ACCT101/103/111. Knowledge of management accounting, finance, economics and company and business law would be useful for this course. C. Course Description This course aims to impart knowledge and understanding in the workings and basic principles of income tax and GST in Singapore. D. Learning Goals, Course Objectives and Skill Developments This course contributes to the development of the following learning goals: LO1.2 Our students can analyze, synthesize and evaluate financial and other related information for decision making in a management context. LO1.4 Our students understand and can apply tax principles and requirements relevant to individuals and business entities. LO2.1 LO2.3 Our students understand and can apply business concepts and principles. Our students can communicate effectively in a business context. LO3.1 Our students understand and can apply the ethical principles relevant to accounting professionals. This course develops students understand of and ability to apply tax principles and requirements relevant to individuals and business entities. Students are expected to demonstrate the following technical competencies upon successful completion of this course: 1. Ability to identify tax issues; 2. Understanding of tax law and practices; and 3. Ability to compute tax liabilities and evaluate tax alternatives to maximize taxpayer s net cash flow. ACCT223 Taxation AY Term 1 Groups 3&4 Page 1

2 E. Learning Approach The pedagogical approach to this course consists of three major elements: Instructor-facilitated Learning: Explanation, Facilitation, Clarification, Synthesis and Analysis Individual Learning: Preparation, Analysis, Discussion, Understanding and to compare and contrast Collaborative Learning: Teamwork, Class discussion between peers. The role of the instructor is to facilitate, explain and clarify tax concepts. Students are reminded that their individual contribution to learning starts before class. Students should prepare by pre-reading, analysing the materials to be covered before coming to class and actively participate in class discussions. Before class preparation is the key for better and faster understanding of tax concepts and principles. Collaborative learning elements are developed through your contribution to your classmates learning experiences, either through teamwork in your group project and being willing to contribute to class discussions and sharing your thoughts so others will benefit. Naturally, your individual preparation, analysis and action will determine how much you are able to contribute to collaborative learning. F. Textbook and Other Resources Textbook and Other References Required Readings Publisher 1 Singapore Tax Workbook Sum Yee Loong 18 th Ed CCH 2 Singapore Income Tax Act Singapore National Printer / CCH / Lawnet 3 Singapore Goods & Services Act Singapore National Printer / CCH / Lawnet 4 Relevant Income Tax / GST Bills MOF website 5 Relevant IRAS E-guides IRAS website Others 1 Singapore Master Tax Guide th Ed CCH 2 Singapore Budget Commentary 2015 Deloitte & Touche 3 Singapore Budget Commentary 2015 Ernst & Young 4 Singapore Budget Commentary 2015 KPMG Singapore 5 Singapore Budget Commentary 2015 PWC Singapore 6 Malaysia and Singapore Tax cases CCH 7 Relevant Tax Cases Lawnet Databases 1 Singapore Master Tax Guide SMU Library E-journals 2 Singapore Good and Services Guide SMU Library E-journals ACCT223 Taxation AY Term 1 Groups 3&4 Page 2

3 G. Lesson Plan Class sessions are of 3-hour duration and will include a review of study materials, class discussions and other learning activities. (Please refer to Annex 1 for topics to be covered each week). Course materials will be published in SMU elearn ( ). A brief outline of course schedule is provided below. A detailed course work plan is available in Annex 2. Basic Tax concepts Taxable and Non-taxable / exempt Income Expenses deductible and non-deductible Capital Allowances Personal Reliefs & Computation of Individual Tax Taxation of Partnership Taxation of Non-residents Taxation of Companies; Carry Forward and Carry Back of Unabsorbed Capital Allowances, Unabsorbed Losses and Unabsorbed Donations; Group Relief Tax Administration Goods & Services Tax H. Assessment To pass the course, a student is required to obtain a TOTAL mark of 50 or higher. The assessment components are: Class Learning Activities (20%), Progress Assessment (10%), Group Project (20%) and Final Examination (50%). 1. Class Learning Activities (20%) Students are strongly encouraged to actively participate in class discussions. Students will be graded on an individual basis according to their contributions to the class discussions (10%), (please refer to Annex 2) and 2 surprise quizzes (10%). In this respect, students should come well prepared for every seminar in this course. 2. Progress Assessment (10%) There will be a test on Week 7 (Friday, 2 nd September). The test will cover up to the topics from Week 1 to Week 7; up to individual taxation. 3. Group Project (20%) A group project will be set based on tax administration or policies for corporate or individual taxpayers or a combination of these and given to you on week 7. The project to be done in groups of 3 or 4 and the softcopy must be submitted before mid-night (2359 hrs) on Sunday (15 th November) of Week 13 and the hardcopy put into my pigeon hole on Level 5 by 6 pm on Monday 16 th November. 4.Final Examination (50%) The final examination will be on Wednesday, 25 th November at 8.30am and will last for 3 hours. The exam will consist of essay type and computational questions. This will be a semi-open book exam with conditions (i.e. only the following may be used): 1. Income Tax Act; 2. GST Act; and 3. 1 A4 size cheat sheet (double-sided). The Acts may be highlighted and tagged but nothing is to be written in the Acts. ACCT223 Taxation AY Term 1 Groups 3&4 Page 3

4 Academic Integrity All acts of academic dishonesty (including, but not limited to plagiarism, cheating, fabrication, facilitation of act of academic dishonesty by others, unauthorised possession of exam questions or tempering with the academic work of other students) are serious offences. All work (whether oral or written) submitted for purposes of assessment must be the student s own work. Penalties for violation of the policy range from zero marks for the component assessment to expulsion, depending on the nature of the offense. When in doubt, students should consult the instructors of the course. Details on the SMU Code of Academic Integrity may be accessed at Prepared by: Sum Yee Loong, 6 July 2015 Vetted by: Seow Poh Sun, 5 August 2015 ACCT223 Taxation AY Term 1 Groups 3&4 Page 4

5 ANNEX 1 Week Week Starting 1 17 Aug 1 INTRODUCTION Topics 1.1 Historical background and legislative framework 1.2 Types of taxes 1.3 Framework of the course 1.4 Tax jurisdiction 1.5 Territorial and worldwide basis of taxation ITA Section 1.6 Charging section 10(1) 1.7 Year of assessment and basis period 2, 35(1) & (4) 1.8 Tax residence Taxable persons Accruing in or derived from Singapore (source) / received in Singapore 10(1) 10(25) 2 /3 24 Aug/ 2 INCOME 31 Aug 2.1 Income vs capital gains 2.2 Badges of trade 2.3 Trade, business, profession and vocation 10(1)(a) 2.4 Employment vs profession Benefits-in-kind Stock options 2.5 Dividends and interest 2.6 Rent and royalties 10(2), (6), (7) & 12(4) 10(1)(d) 13((1)(zd) 10(1)(f), 10(14),(16). 2.7 Exempt income 13 3/4 31 Aug/ 3 DEDUCTIBLE EXPENSES 7 Sept 3.1 Distinction between revenue and capital expenditure 3.2 Disallowed expenses Tax deductible expenses Interest 14(1)(a) 3.5 Pre-commencement expenses 14U 3.6 Special deductions: registration of patents, building modifications, upfront land premiums, treasury shares and renovation and refurbishments (R &R) 3.7 Double/further deductions 14A,H,N,P,Q Trade fairs, exhibitions, overseas trade offices 14B ACCT223 Taxation AY Term 1 Groups 3&4 Page 5

6 R&D 14D,DA,E 3.8 Donations 37(3) 3.9 Productivity and innovation credit (PIC): registration of IP, R&D, training, design, leasing and royalties 14A,DA,R,S, T,W, 19A 3.10 PIC bonus 37IA 4/5 7 Sept/ 4 CAPITAL ALLOWANCES 14 Sept 4.1 Plant & machinery (P & M) 19, 19(A) 4.2 Balancing adjustments Replacement of P & M Related party transfers Intellectual property rights 19(B) 4.5 Industrial building allowance (IBA) Balancing adjustment Land intensification allowance 18C 4.8 PIC : automation equipment and IPR 19A(2A),(2B), 19B(1A), (1B) 5/6 14 Sept/ 5 INDIVIDUALS 21 Sept 5.1 Personal reliefs 39, 5 th Sch 5.2 Parenthood tax rebates 42A 5.3 Transfer of CA / losses / donations to spouse 37D 5.4 Carry back relief 37E, F 7 28 Sept 6 TAXATION OF NON-RESIDENTS 6.1 Sources of income (deeming provisions) 12(1)-(8) 6.2 Withholding tax 45-45GA 6.3 Reliefs for non-residents s40 to s40c 40-40C 8 5 Oct RECESS 9/10 12 Oct/ 7 TAXATION OF COMPANIES 19 Oct 7.1 Imputation system, classical system and one-tier corporate tax system 7.2 Statutory, assessable & chargeable Income 35, 37, Full & partial tax exemption 43(6) 7.4 Carry forward of CA, losses and donations. 23(1), 37(3) 7.5 Shareholders test. 23(4),37(12) 7.6 Waiver of shareholders test 23(5),37(16) ACCT223 Taxation AY Term 1 Groups 3&4 Page 6

7 7.5 Group relief system 37C 7.6 Carry back of CA and losses 37E Oct 8 PARTNERSHIP AND TAX ADMINISTRATION ITA 8.1 Determination of partner s share of adjusted profits/losses Returns 62, Assessments 72, Appeals Collection Offences and penalties 87, 94-96A 8.6 Record keeping Others Nov 9 GOODS & SERVICES TAX GST Act 9.1 Overview & charging section 8, GST registration 9.3 Types of supplies and deemed supply 9 1 st Schedule 10 2 nd & 4 th Schedule 9.4 Time, place and value of supply 11-13, Zero-rating for exports and international services Reimbursements or disbursements 9.7 Accounting period for GST GST general regulation s Offences & penalties Nov Revision Nov Study week 15/16 23 Nov/ Exam weeks (Exam day 25 th November at 8.30am) 30 Nov ACCT223 Taxation AY Term 1 Groups 3&4 Page 7

8 ANNEX 2 Grading Policies Class Learning Activities (10%) Class learning activities and class participation are an integral pedagogical approach at SMU. The importance of class interaction is enshrined in the SMU Mission Statement: Delivering an interactive, participative and technologically-enabled learning experience. It is also one aspect of assessment that may give rise to anxiety to some students due to its potential ambiguity. This grading policy on class learning activities intends to provide you some indication on how you will be assessed. Grading Your Class Learning Activities grade will reflect the assessment of your level of Individual Learning (Preparation, Analysis, Action) having a positive impact on Collaborative Learning (Team Work, Discussion and Sharing), and your overall level of professionalism. Thus, ill-prepared blabbering is inappropriate, similarly the hijacking the airwaves without due consideration of others. Mark Range Comments Outstanding Contributor. This student was well prepared and contributed actively to class discussion. The student s presence in the seminar significantly enhanced the learning experience for other students Good Contributor. This student was well prepared and contributed positively to class discussion and was an active participant in class and during group learning Average Contributor. This student attempted the seminar exercises and participated in class, but less frequently or with contribution of a lower quality than outstanding and good contributors Below Average Contributor. This student had done minimal preparation, occasionally absent from classes and generally had very little participation in class Unsatisfactory Contributor. This student was unprepared, occasionally absent from classes and did not participate. ACCT223 Taxation AY Term 1 Groups 3&4 Page 8

9 ANNEX 3 Group Project (20%) You are required to prepare a report on a project based on tax administration or policies for corporate or individual taxpayers. Each group is required to deposit a hardcopy of the report into my pigeon-hole on L5 SOA by 1800 hours on Monday The softcopy of the report (Microsoft Word format) should be compressed in a zip file and sent to me through before midnight (2359 hrs) of Sunday Marks will be deducted for late submissions. Aim and Scope The aim of the Group Project is to integrate the concepts, theories and discussions you have covered into a report on the subject/project as set. You should be able to research, critically analyse and evaluate the various technical issues on the subject matter and report these in a clear and concise manner; but ensuring that all technical points are still clearly analysed and illustrated Key Specifications Maximum length of report: up to 5000 words, excluding appendices, if any. Formatting: One line paragraph spacing, with spaces between paragraphs Electronic submission in Microsoft Word format, one file only This project is worth 20% of the total 100% grade component. Grading policy for this assessment is described below. Report The final report must include a (1) cover page and executive summary, (2) introduction (3) analysis and (4) conclusions. Your report should demonstrate your ability to carefully research, thoughtfully write and professionally present your group s analysis. Your report should not be just a bullet point list of answers, nor should it merely contain extracts and quotations of the legislations and/or articles. It must show a coherent flow and exhibit a cohesive examination of the company. You are welcomed to use other sources of information (e.g. IRAS website, press releases, newspaper clippings, etc) but they must be properly cited, referenced and noted. Indicate where possible the section(s) of the Income Tax Act, GST Act, Economic Expansion Incentives Act or other source(s) which provide(s) the information. You can expect that the reader of the report is reasonably knowledgeable about taxation and fiscal matters. You do not have to spend time defining basic items. ACCT223 Taxation AY Term 1 Groups 3&4 Page 9

10 Grading Your Group Project grade will reflect my assessment of your level of research, critical analysis and conclusions. Your ability to convey what you have analysed into a meaningful, well-structured, wellpresented report will be evaluated. This is a shared grade amongst the group members, unless there are indications of a non-functioning group where other basis of allocation may then be applied as deemed appropriate under such circumstances. Groups having insurmountable conflicts are advised to get in touch with me as soon as possible. Recap of important elements of a desirable group project report: Structure: A cohesive structure that flows logically from one section to another, demonstrating a holistic understanding of the overall purpose of the report rather than piece-meal, point-by-point answers to a series of questions. o A proper executive summary that summarises your report, not an executive agenda. o An introduction that explains to the intended reader of your scope, agenda, approach, assumptions, etc. o Good, clean and consistent formatting, appropriate spacing, consistency of styles, and good English expressions, adherence to grammar and sentence structure. o Properly-cited references that demonstrate an attempt to learn beyond the course materials. o An appropriate and strong conclusion. Analysis: A comprehensive assessment of all relevant information at a level appropriate for the course, based on the prescribed methodology. o Exhibit sufficient level and depth of analysis. o Appropriate use of summary tables, charts, figures, appendices, etc to illustrate your findings and analysis. o Technical proficiencies (calculations) are assumed, unless your report casts doubts of your ability. Your Group Project Report grade will be based on the elements listed above. The grades below are out of 20 points assigned to this component of assessment. A+ [19-20] = truly exceptional report exceeding expectation, reserved for those who manage to demonstrate all of the above requirements A & A- [16-18] = excellent report, meeting significant majority of the above requirements Bs [14-15] = good effort, meeting most of the above requirements Cs [11-13] = commendable attempt, but lacking in many areas Ds [10] = poor effort Fs [0 to 9] = very poor effort ACCT223 Taxation AY Term 1 Groups 3&4 Page 10